thanks State Farm
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Doesn't this OP ever get tired of posting nonsensical crap?
Policies in force is also going down, down, down across the country. Down 908,000 (net loss) in 2017, and down 132,000 (net loss) in the first three months of 2018. Auto claims customer service is also going down down down across the country as we magically expect first-rate service from fourth-rate new-hires.
Big Dog was a very different animal. Competitors started “scoring” business and we did not. Everybody with a clean record got our best rate. The problem was that 40% should have been paying more, and 40% should have been paying less. Guess which 40% left, and which 40% not only stayed, but also referred their low score friends?
Fortunately, State Farm was smart enough to be running the data and learning from it, but that was a huge mess.
L/C will be much improved for Preferred and slightly improved for Standard. L/C follows rate activity up and down. Takes 1 to 2 renewals to see full impact. Will see continued improvement through 2019. Then it will flatten unless rates go up or down.
Will lapse/cancellation rates be impressive for 2018?
Reductions also attributed to ageism and with removal and replace ment of 50 year olds with younger, less salaried .
Much improved claim and expense trends are creating the rate reductions for customers. Absent, a major hurricane or EQ in back half of the year profit will be impressive for 2018.
We have always operated with a philosophy that we need raw new auto policies to cross sell other products to. The Farm has deep pockets to buy customers (through cheap rates) and they tried this with "The Big Dog" campaign. Yes, it brought in new customers, but it also brought in a lot of new claims, and overwhelmed underwriting. A number of SMs that I know predicted last year that the Farm would lower rates to buy back business. They also told me that we are not in a position to service the influx that will come with lower rates. Having seen the failure of "The Big Dog", I am not looking forward to what this is going to bring.
Don't look into the RICO lawsuits! Don't mind the used... Err "remanufactured" auto parts. We now have attached a flyer for reduced auto rates to the class action lawsuit postcards we are legally required to send you! "Helping life go right"
The scent of desperation is overpowering. Not to mention the slight of hand attempt at distraction. "don't look behind the curtain....nothing to see here"